Traditional user licensing of software is based on two different methods, the per seat license and the concurrent user license. The per seat license provides a method in which anyone who will ever use the software is counted as a licensee. It is most commonly used for stand-alone applications, such as word processors, spreadsheets and CAD software, in which the software is loaded on to each user's computer when it has to be used. Per seat licensing gives the user the right to use the software on his computer. Every user who will use the software must have a license, even if the use is infrequent.
The concurrent user license is based upon how many users are simultaneously connected to the server at any given time. This method is generally used in client-server applications where a substantial portion of the software works on a "server." Concurrent user licensing gives the company the right to have a certain number of users working simultaneously with the server. As soon as a user disconnects from the server, the server is no longer doing any more work of the disconnected user. Consequently, the license may be used by some other user.
Neither method of licensing is equitable or meaningful for a new generation of software applications for which the server usage by a client is persistent even after the client has disconnected. These new software applications are typically designed to perform a "service" which takes a period of time to complete. This means that usage is persistent even after the user has disconnected. Examples of such applications include workflow automation software, e-commerce software, HR software, enterprise resource planning software, help desk, customer care, call centers, etc. In these applications a server can do work for disconnected users in two ways.
A first manner occurs when the user connects with the application or the "server," uses the application to initiate a transaction which will last for some period of time which could range from a few minutes to several months, and then disconnects. Even though the user is no longer connected to the server, the "server" or software application is doing the work. For example, a user initiates a purchase order request using workflow automation software. The user will simply initiate the purchase order workflow by filling out a form. This might take a couple of minutes during which time the user is connected to the workflow server. After the form is complete, the user disconnects from the server and the purchase order workflow process continues as the workflow server takes the purchase order and routes it to various individuals for approval. This might take several days or weeks. The workflow server is doing the work of handling the purchase order throughout this entire time period, even though the user who first initiated the purchase order has disconnected.
A second manner occurs when some other user or event triggers a transaction which can involve a disconnected user. Even though the user is disconnected, the server is doing work for that user by updating the user's task list and sending him e-mail notifications.
For these types of new generation applications where server utilization is persistent even when the user is disconnected, the two conventional methods of licensing are not equitable. The per seat license is not equitable to the customer because in many cases there are users who will only use the software infrequently. The customer has to either buy licenses for all such users or exclude infrequent users from full participation. For example, assume the president of a company is required to approve all purchase orders written for $10,000 or more and the purchase order is initiated and processed through various users of the software. In most cases at this company, the purchase orders are for amounts less than that figure and perhaps only once or twice a month is a purchase order written that needs the president's approval for the high dollar amount. The president of the company has to be a licensed user of the software even though he will only be using the software a few minutes each month. Per seat licensing would therefore discourage companies from fully deploying the software solution because they would try to reduce costs by limiting the deployment to only the most frequent users.
Concurrent User Licenses are not equitable to the software vendor because if a user connects to the server, initiates a transaction or process, and then disconnects, the server may still have to keep on performing work for the user even though the user has disconnected. The software is therefore being used even though the user is disconnected.
Therefore, there is a need to provide a server that monitors the usage of software that is equitable to both the provider and the user of the software.